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INCOME TAXES
3 Months Ended
Mar. 29, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
Our effective tax rate on earnings for the thirteen weeks ended March 29, 2013 was 83.4% compared to 42.2% for the same period in 2012. The effective tax rate of 83.4% is due primarily to the retroactive restoration of the Work Opportunity Tax Credit. The American Taxpayer Relief Act of 2012 ("the Act") was signed into law on January 2, 2013. The Act retroactively restored the Work Opportunity Tax Credit. Because a change in tax law is accounted for in the period of enactment, the retroactive effect of the Act on the Company's U.S. federal taxes for 2012, a benefit of approximately $3.2 million, was recognized as of March 29, 2013. This tax credit benefit increased our effective tax rate on losses for the thirteen weeks ended March 29, 2013 from the anticipated 2013 rate of 34.2% to 83.4%.
The principal difference between the statutory federal income tax rate of 35.0% and our effective income tax rate of 34.2%, excluding the retroactive restoration of the Work Opportunity Tax Credit, is from current year federal tax credits, state income taxes, and certain non-deductible expenses. As of March 29, 2013 and December 28, 2012 we had unrecognized tax benefits of $2.0 million and $1.9 million, respectively, recorded in accordance with current accounting guidance on uncertain tax positions.
Deferred taxes related to our foreign currency translation were de minimis for both thirteen weeks ended March 29, 2013 and March 30, 2012.